Honigman Capitol Report

Governor's Office

Leadership Triangle to Meet Tuesday

Governor Gretchen Whitmer has scheduled a meeting with House Speaker Matt Hall and Senate Majority Leader Winnie Brinks for Tuesday. This will be the first time the "triangle" has met since budget negotiations stalled on July 1. The meeting comes after numerous individual and small group discussions between the Governor and legislative leaders, totaling around two dozen interactions from July 1 to mid-August. At a press conference, Hall mentioned the upcoming meeting with Whitmer and Brinks, noting the absence of Senate Minority Leader Aric Nesbitt and House Minority Leader Puri. Hall expressed confidence in his negotiation skills, suggesting Brinks is reluctant to negotiate with him. Brinks' press office declined to comment on the meeting. Speaker Hall highlighted the increase in departmental budgets from former Governor Rick Snyder's last budget to Whitmer's Fiscal Year 2025 budget, focusing on the Labor and Economic Opportunity and the Department of Environment, Great Lakes, and Energy budgets. The Governor's perspective is that some departments have been restructured and others received significant one-time federal revenue.

Committee News

House Fails to Pass Pay Suspension Proposal

The House narrowly failed to pass a measure that would have placed a constitutional amendment on the ballot to suspend the pay of the Governor and legislators if they fail to pass a budget by the July 1 deadline. The proposal, known as HJR M, received support from the entire Republican caucus but fell short by four votes due to insufficient Democratic support, garnering 70 out of the 74 votes needed. The amendment, introduced by Rep. Jamie Thompson, aimed to enforce the budget deadline by suspending lawmakers' salaries until a budget is passed, at which point they would receive back pay. The idea was initially proposed by Detroit Mayor Mike Duggan, and Rep. Matt Hall credited Duggan for the concept, suggesting it would have expedited budget negotiations. The proposal caused internal conflict within the House Democratic caucus, with debates on whether to vote as a bloc or according to individual districts. House Minority Leader Ranjeev Puri initially suggested a "yes" vote but ultimately voted "no." The vote was called by Hall at 1:13 p.m., and by 1:54 p.m., several Democrats, including Reps. Julie Brixie and Jennifer Conlin, voted in favor, but it was not enough to pass the measure. Senate Majority Leader Winnie Brinks expressed openness to considering similar measures in the Senate. The Senate had already passed its version of the budget, while the House had only moved education-related budget bills. Hall criticized Democrats for not having "skin in the game" and suggested that the measure would aid future budget negotiations. He also predicted dissatisfaction among Democratic constituents over their representatives' reluctance to suspend pay for missing budget deadlines. House Appropriations Chair Ann Bollin supported the measure, stating it was the right thing to do, and expressed willingness to have her own pay suspended until a budget is passed.

Election News

Steele Announcement Leaves 54th House District Open

Rep. Donni Steele, a two-term Republican House member, has announced her candidacy for the open 23rd Senate District seat. This district was redrawn following a court order, and Steele is the first candidate to file for it. The seat is currently held by Sen. Jim Runestad. The redistricting significantly altered the district, removing areas in Oakland County and adding new areas in Oakland, Genesee, and Lapeer counties. This change was mandated by a court order after it was found that the Independent Citizens Redistricting Commission had predominantly considered race when drawing seats in Southeast Michigan. Steele was first elected to the 54th House District in 2022, a competitive district, winning with 51% of the vote and 52% in 2024. Although she could have served four more terms in the House due to term limit changes, her decision to run for the Senate leaves the 54th House District open, making it a potential target for Democrats in 2026. Steele currently chairs the House Appropriations State and Local Transportation Subcommittee and serves on House Appropriations and two other appropriations subcommittees, as well as the Joint Capital Outlay Subcommittee.

On Point

Client Alert: Michigan Supreme Court Changes Analysis of Shortened Limitations Periods